Private banks lead in credit growth in Q2 as demand grows: RBI data

Annual growth in working capital loans by banks increasing after contracting in March 2021

Private sector banks outpaced their state-owned peers in the second quarter ended September 2022, increasing their share in total credit to 38.4 per cent from 37.5 a year ago.

The share of private lenders was 29.6 per cent five years ago, said the Reserve Bank of India in a statement.

According to CARE Ratings assessment, the loan portfolio of private sector banks grew 20.6 per cent year-on-year (Y-o-Y) at end of September 2022. State-owned banks grew 18.7 per cent in the same period.

RBI said bank credit growth (y-o-y) accelerated further to 18 per cent in September 2022, compared with